How Do I Repair My Damaged Credit?

Many people end up with bad credit scores because of the job market or simply the cost of living. Follow these tips if you need a better credit score.

The first step to repairing your ailing credit is to create a manageable, feasible financial plan. Real changes come from commitment to healthy spending habits. Only buy the things that are absolutely necessary. If you are buying something because you want it, and don’t need it, put it back on the shelf.

If you are unable to get a new card because of your bad credit, try to apply for secured cards. Most likely, you will not have a problem obtaining this type of card, but you must add funds to the account before you make any purchases to assure the bank that you will pay. Even though this card will be secured by your own money, you will make payments and manage it as if it were unsecured. This will improve your credit as you show yourself able to make the payments on time.

Credit Score

Once you have your credit score higher, you will be able to finance a house. Making mortgage payments in a timely manner helps raise your credit score even more. Having a major asset like a house also looks good to potential creditors. These benefits will pay off if you need to secure a loan.

You need to work with the companies from whom you have credit cards. By keeping the lines of communication open, you will avoid getting into more debt, making your credit score even worse. See if the company will allow you to modify the monthly due date, or reduce the payments.

Credit Counselors

You need to carefully scrutinize credit counselors before you consult them for help with repairing your credit. Some counselors truly want to help you, while others are untrustworthy and have other motives. Also be aware that there are other credit counseling services run by dishonest people. These services are scams and should be avoided at any cost. A wise consumer will find out if the credit counselors they deal with are legitimate or not.

Call and request lower limits on your cards from the credit card companies. This will prevent you from spending too much that you do not have. It will also show the credit companies how responsible you are, and if you do need to get more credit in the future, you will have a much easier time.

One way to increase your credit score is to become a member at a credit union. You may find that the credit union has more options and better rates to offer you than banks will.

Anything on your credit report that you feel is inaccurate should be disputed. Report any errors to the three credit reporting agencies. Be sure to include any documents to support your case. Mail your dispute packet with receipt confirmation so you will have proof the agency has received it.

In order to start repairing your credit, you should close all but one of your credit card accounts. You will want to either transfer your balances onto the one remaining card or set up payment arrangements, but close the account to new charges. You will be able to pay one bill instead of a plethora of small ones.

If you are late with your payment, your credit status will suffer. Every late payment appears on a credit report, and could potentially hurt your chances at a loan.

Take the time to carefully go over your monthly credit card statement. You will need to read over every charge on your account to check that it is accurate. You are the only person that is responsible for making sure the statements are error free.

Now that you know various ways to repair your credit, why should you wait to use them? Don’t let poor credit affect your life any longer. Use the tips presented here to repair you score and your overall financial health.

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